New Delhi: The commerce and industry ministry is mulling incentives for states which play a proactive role in promoting exports as it will help boost economic growth, Suresh Prabhu said on Monday.
He said he has sought the views of states on the issue, which was raised during the third meeting of Council for Trade Development and Promotion.
“We are thinking of ideas whereby we can incentivise the states which promote exports. I have mooted this idea before the states and asked them to give their ideas on this,” Mr Prabhu said.
Trade contributes significantly in boosting the economic growth, he said. If the GDP of states rises, it would push the country’s growth, he said, adding that the focus should also be on the districts’ GDP, which in turn would fuel the nation’s economy.
Mr Prabhu said the ministry is in the process of preparing a strategy to promote overall exports and push the country’s industrial growth.
When asked about the concerns raised by exporters in the meeting related to GST refund, he said the issue was discussed and the ministry is working on an ‘e-wallet’ system to resolve it.
Before the implementation of the GST, exporters used to get abinitio exemptions from duties. But now they have to pay first and then seek refund. Due to this process, the FIEO has stated that about '1,85,000 crore will get stuck.
Under the proposed system, the problem of liquidity will be solved as exporters may use it like a running account where money will be debited from e-wallet when duty paid supplies have to be undertaken and the amount will credited when the proof of exports is made available.
